Ripple knows very well that freeing up capital for customers’ cross-border transactions will be very inefficient. However, at the same time, it is important to create credit arrangements for each destination market, which is also a time-consuming process.
With a line of credit from Ripple, financial institutions will be able to use XRP to complete instant, low-cost cross-border transfers. Users will be able to lock in a rate at the time of the payment, then they will be able to repay it when it’s convenient for them, for a small fee.
However, this is only for use by eligible institutional RippleNet customers, and not for consumers, general public, or retail customers. Also, the availability varies by jurisdiction and is subject to change.
Since,RippleNet’s security capabilities are SOC 2 certified, they are able to ensure operational excellence.
For clarity, System and Organization Controls 2 (SOC 2) are a set of internal control reports which ensure service organizations have the appropriate processes in place for secure data management and processing.
While all these are happening one of the users stated, I’m more curious how we normal folk can become financial institutions. If ripple and XRP is for the banks, then we will become banks.
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